Author - OTI

On Track Innovations Continues to Gain Market Share in the Global Smart ATM Market

OTI Receives Purchase Order for 4,000 Advanced Contactless UNO-8 Readers for use in Smart ATM Applications

ROSH PINNA, Israel, January 21, 2019 — On Track Innovations Ltd. (OTI) (NASDAQ: OTIV), a global provider of near field communication (NFC) and cashless payment solutions, today announced that it has received a purchase order to deliver more than 4,000 UNO-8 advanced contactless NFC readers to service the global Smart ATM market, which will be delivered in the first quarter of 2019.

Smart ATMs integrate a contactless NFC reader, such as OTI’s UNO-8, to provide secure, fast, simple and convenient banking, while providing the ATM operator with the ability to identify the account owner and communicate with their smartphone.

The UNO-8’s unique form factor makes it the world’s smallest FeliCa- and EMVCo Level 1 & 2 modular certified reader, while also supporting other NFC contactless payments, like Mifare and P2P. With complete contactless connectivity and multiple mounting options, the UNO-8 is designed for unattended retail environments with self-service payment stations, including ATMs, smart Electric Vehicle charging stations, ticket vending machines, toll roads, gaming machines, kiosks, access control, and mass transit.

“I am pleased to announce this new purchase order for our cutting-edge UNO-8 contactless NFC readers,” said Shlomi Cohen, CEO of OTI. “The smart ATM market is growing as ATM operators worldwide begin to recognize the value of the enhanced functionality that our products provide. We expect to realize  continued sales growth in this exciting segment and look forward to providing our shareholders with further updates as appropriate.”

About OTI

On Track Innovations (OTI) is a global leader in the design, manufacture, and sale of secure cashless payment solutions using contactless NFC technology. OTI’s field-proven innovations have been deployed around the world to address cashless payment and management requirements for the Internet of Payment Things (IoPT), wearables, automated retail, and petroleum markets. OTI distributes and supports its solutions through a global network of regional offices and alliances. OTI is the proud recipient of the 2017 AI Award for Best Cashless Payment Solutions Provider – Israel. For more information, visit www.otiglobal.com.

Safe Harbor / Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Any statements that are not statements of historical fact should be considered forward looking statements. Whenever we use words such as “will,” “look forward,” ” expect,”, “plan,” “intend,” “can” or similar expressions, we are making forward-looking statements. For example, we are using forward-looking statements when we discuss, among other things, , our continued sales growth in the smart ATM and other markets, our aggressive growth initiatives, sources of revenue and anticipated revenue, including the contribution from the growth of new markets. Forward-looking statements are management’s present expectations of future events, are made as of the date of this document and are inherently subject to risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements, including growth into the smart ATM market. Additional factors that could cause actual results to differ materially from those anticipated by our forward-looking statements are stated under the captions “Risk Factors” in our most recent Annual Report (Form 10-K) and other known and unknown uncertainties and risk factors including those detailed from time to time in the Company’s filings with the Securities and Exchange Commission. Forward-looking statements are made as of the date of this release, and we expressly disclaim any obligation or undertaking to update forward-looking statements. The reader is cautioned not to place undue reliance on forward-looking statements.

Investor Relations Contact:

Greg Falesnik
MZ North America
+1-949-385-6449
Greg.Falesnik@mzgroup.us

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OTI – Global is seeking a European Regional Sales Manager for the Cashless payment Market

Location: EUROPE

Job Description:

EUROPEAN REGIONAL SALES MANAGER

Leading global payment company is looking for “Hunter” with vast knowledge in the payment industry within the European region.

The successful candidate will have significant sales experience in the payment industry and specifically focus on carrying out direct sales activities in order to maintain and develop sales of the payments product range.

Candidate should understand and monitor the e-commerce payment market across CEE countries and, consequently, suggest new initiatives to respond to changes in these markets.

Main responsibilities:

  • Active business development: close new business deals by coordinating requirements; developing and negotiating contracts; integrating contract requirements with business operations and setting up performance tracking capabilities
  • Exceed individual sales targets and help the company to achieve its revenue and non-revenue-based targets.
  • Managing existing regional contracts
  • Market research and sales activities on foreign markets (mainly Eastern Europe)
  • Create and own go to market segmentation and compelling formulation of the value proposition for customers/partners/distribution in the payment industry
  • Identifying and engaging with current and potential adopters of a relevant payment technology
  • Build sustainable and valuable relationships with the partners in order to complete the 360° view of his client
  • Position the company as a business partner, in order to identify and create new business opportunities
  • Articulate company solutions into a value proposition that answers the client needs
  • Propose innovative approaches and partnerships in order to develop unsolicited offers
  • Build long-term C Level customer relationships with CFOs, CTOs and CEOs and other stakeholders, understanding the industry trends while growing revenue in the assigned segment.

Requirements:

  • High-level Sales executer
  • MA or MSc in business/sales/management or IT
  • 5 years of B2B Sales experience of Technology Products / IT Solutions in a Payments/ multicurrency or prepaid environment is a must
  • English – fluent, other EUROPEAN languages will be an advantage
  • Working experience in sales and business development in B2B
  • Local & industry network (credibility with clients)
  • International multi-cultural orientation
  • Availability and willingness to travel abroad within Europe
  • Entrepreneurial spirit, that allows you to work independently and to take responsibility for your own actions.
  • Good knowledge in the area of new payment technologies or within target industries business processes
  • Excellent interpersonal& written communication skills, positive attitudes at work
  • Strong focus on results and achievement of goals
  • Knowledge of the Payment ecosystem, its relevant players and understands the payment market value proposition in the relevant region

 

Please send cv to shlomi@otiglobal.com

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OTI – Global is seeking a VP Sales for the world-wide Cashless Payment market

Location: Global Arena

Job Description:

Global VP Sales – Hunter

We are looking for a true sales leader to provide leadership for the company sales. Develop and implement sales and marketing strategy. Monitor and analyze sales and marketing activity against goals. Proven experience in the Payments\IoT\POS industries with proven successful sales experience.

experience in IoT / Payment / POS and proven successful sales career

Location: Global

PRIMARY RESPONSIBILITIES

·         Leading sales activities in NA\EU\APAC markets

·         Accelerate the sales growth within the different verticals

·         Develop and coordinate sales selling cycle and methodology.

·         Direct and oversee the company marketing function to identify and develop new customers for products and services.

·         Research and develop strategies and plans which identify marketing opportunities, direct marketing, and new project development.

·         Analyze and evaluate the effectiveness of sales, methods, costs, and results.

·         Develop and manage sales budgets and oversee the development and management of internal operating budgets.

·         Directly manage major and critical developing client accounts and coordinate the management of all other accounts.

·         Participate in the development of new project proposals.

·         Establish and implement short- and long-range goals, objectives, policies, and operating procedures.

·         Represent the company at various community and/or business meetings to promote the company.

·         Supervise the preparation, issuance, and delivery of sales materials, exhibits, and promotion programs.

·         Promote positive relations with partners, vendors, and distributors.

·         Recommend and administer policies and procedures to enhance operations.

·         Work with department managers and corporate staff to develop five-year business plans for the company.

·         Establish and implement short- and long-range departmental goals, objectives, policies, and operating procedures.

·         Serve on planning and policy-making committees.

·         Other duties as assigned.

Requirements

·         At least 7 years sales experience in the payments\IoT\POS industries, with 4 years in a senior management position.

·         Ability to plan and manage at both the strategic and operational levels.

·         Established contacts and relationships with potential customers and channel partners.

·         Outstanding consultative selling abilities and excellent interpersonal skills with executive level customers and partners.

·         Proven evangelical sales track record in a new product/new market environment.

·         Ability to work collaboratively with colleagues and staff to create a result driven, team-oriented environment.

·         Experience with a specific sales methodology, sales funnel management.

·         Experience in choosing, deploying and using marketing and sales (globally) SW applications.

 

Please send cv to shlomi@otiglobal.com

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On Track Innovations Ltd. Announces Agreement to Divest Non-Core Legacy MediSmart Division

Divestiture to Fortify OTI’s Balance Sheet with $2.75 Million in New Capital

ROSH PINA, ISRAEL – December 6, 2018 – On Track Innovations Ltd. (OTI) (NASDAQ: OTIV), a global provider of near field communication (NFC) and cashless payment solutions, together with its South African subsidiary, OTI Petrosmart (PTY) Limited, have entered into an agreement to divest their non-core legacy division of MediSmart to a current customer, Smart Applications International Ltd. (“SMART”). Under the terms of the transaction, SMART will acquire MediSmart for total consideration of $2.75 million in cash. The transaction is subject to customary conditions and is expected to close in January 2019.

MediSmart is an information management and claims submission system for the medical sector. MediSmart is designed to benefit medical administrators, hospitals, clinics, medical service providers and patients. Through an integrated system, incorporating contactless smart card and biometric technologies, MediSmart offers fast and secure access to medical information, transaction generation, claims management, expenditure control, and reporting.

“I am pleased to announce the sale of MediSmart to SMART, the sole user of the legacy product,” said Shlomi Cohen, CEO of On Track Innovations. “The MediSmart business is a non-core, legacy business generating approximately $1.5 million in annual revenues. This divestiture will further shore up our balance sheet, providing us with additional capital to advance our aggressive growth initiatives while allowing us to remain laser-focused on continued operational execution across our core business units.”

About OTI

On Track Innovations (OTI) is a global leader in the design, manufacture, and sale of secure cashless payment solutions using contactless NFC technology. OTI’s field-proven innovations have been deployed around the world to address cashless payment and management requirements for the Internet of Payment Things (IoPT), wearables, automated retail, and petroleum markets. OTI distributes and supports its solutions through a global network of regional offices and alliances. OTI is the proud recipient of the 2017 AI Award for Best Cashless Payment Solutions Provider – Israel. For more information, visit www.otiglobal.com.

Safe Harbor / Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Any statements that are not statements of historical fact should be considered forward-looking statements. Whenever we use words such as “will,” “look forward,” “anticipate,”, “plan,” “can” or similar expressions, we are making forward-looking statements. For example, we are using forward-looking statements when we discuss, among other things, the timing of the closing of the divestiture of our MediSmart division, our aggressive growth initiatives, our expectation of shoring up our balance sheet and our future operational execution. Forward-looking statements are made as of the date of this document and are inherently subject to risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements, including the fulfillment of conditions for the MediSmart sale to close. Additional factors that could cause actual results to differ materially from those anticipated by our forward-looking statements are stated under the captions “Risk Factors” in our most recent Annual Report (Form 10-K) and other known and unknown uncertainties and risk factors including those detailed from time to time in the Company’s filings with the Securities and Exchange Commission. Forward-looking statements are made as of the date of this release, and we expressly disclaim any obligation or undertaking to update forward-looking statements. The reader is cautioned not to place undue reliance on forward-looking statements.

 

Investor Relations Contact:

Greg Falesnik
MZ North America
+1-949-385-6449
Greg.Falesnik@mzgroup.us

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On Track Innovations Receives Additional Purchase Order for More Than 3,000 Advanced Systems in Russia

OTI Will Deliver More Than 11,000 Advanced Payment Systems to the Widespread Russian Retail Self-Service Market by the End of 2018

ROSH PINNA, ISRAEL – December 4, 2018 — On Track Innovations Ltd. (OTI) (NASDAQ: OTIV), a global provider of near field communication (NFC) and cashless payment solutions, has received a purchase order for more than 3,000 advanced payment systems to the massive Russian retail self-service market from a current customer. This order follows OTI’s successful acceptance of the mandatory MIR certification in the ever-growing Russian market.

To date, OTI has delivered more than 11,000 advanced payment systems in the Russian self-service market. Due to confidentiality, the terms of the agreement cannot be disclosed.

The MIR credit card approval grants OTI’s Russian customers with the ability to use OTI cashless payment solutions as a convenient way to pay in the Russian unattended automated machines. The Russian national payment system created the Mir payment card in 2014 with the primary objective of sovereign payments to be independent of foreign organizations; By the end of 2016, 1.76 million Mir cards issued by 64 banks, and according to the Bank of Russia in September 2017, 30 million Mir cards planned for release.

“This latest purchase order underscores our customers commitment to OTI as a company with the most advanced technologies and highest security standards. This traction also further solidifies us as a major player in the Russian and European markets,” said OTI’s CEO, Shlomi Cohen. “We look forward to a bright future in Eastern Europe as we continue to deliver best-in-class advanced payment solutions for Russia, one of our top strategic markets.”

About OTI

On Track Innovations (OTI) is a global leader in the design, manufacture, and sale of secure cashless payment solutions using contactless NFC technology. OTI’s field-proven innovations have been deployed around the world to address cashless payment and management requirements for the Internet of Payment Things (IoPT), wearables, automated retail, and petroleum markets. OTI distributes and supports its solutions through a global network of regional offices and alliances. OTI is the proud recipient of the 2017 AI Award for Best Cashless Payment Solutions Provider – Israel. For more information, visit www.otiglobal.com.

Safe Harbor / Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Any statements that are not statements of historical fact should be considered forward looking statements. Whenever we use words such as “will,” “look forward,” “anticipate,”, “plan,” “can” or similar expressions, we are making forward-looking statements. For example, we are using forward-looking statements when we discuss, among others: our plans for the future, our expectations regarding future product launches and growth into new markets such as the Russian market, the importance of the MIR certification in Russia, sources of revenue and anticipated revenue, including the contribution from the growth of new products, services and markets and our expectation of bringing tremendous value to our industry while generating predictable, high-margin, recurring revenues for the Company and great value for our shareholders. Forward-looking statements are made as of the date of this document and are inherently subject to risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements. Additional factors that could cause actual results to differ materially from those anticipated by our forward-looking statements are stated under the captions “Risk Factors” in our most recent Annual Report (Form 10-K) and other known and unknown uncertainties and risk factors including those detailed from time to time in the Company’s filings with the Securities and Exchange Commission. Forward-looking statements are made as of the date of this release, and we expressly disclaim any obligation or undertaking to update forward-looking statements. The reader is cautioned not to place undue reliance on forward-looking statements.

Investor Relations Contact:

Greg Falesnik
MZ North America
+1-949-385-6449
Greg.Falesnik@mzgroup.us

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On Track Innovations Ltd. Reports Third Quarter 2018 Financial Results

Third Quarter Revenues Increase 39% to $6.5 Million; Debt Reduced by 89% to $0.5 Million

Rosh Pina, Israel – November 7, 2018 – On Track Innovations Ltd. (OTI) (NASDAQ: OTIV) (the “Company” or “OTI”), a global provider of near field communication (NFC) and cashless payment solutions, has provided a business update and announced financial results for the third quarter ended September 30, 2018.

Operational Updates:

  • OTI delivered a total of more than 3,000 advanced payment systems to Japan.
  • OTI delivered approximately 8,000 advanced contactless readers to the widespread Russian retail self-service market.
  • The Company received the MIR National Card Payment System organization certification, a key component of effectively penetrating the strategic Russian unattended payment market.
  • In August, Apriva released a white paper affirming its ongoing partnership with OTI for deploying next generation self-serve and vending technologies, enabling OTI to offer merchants a pre-certified, off-the-shelf EMV solution for self-service kiosks.
  • In October, OTI was granted the Interbank Network Interac certification, allowing Canadian businesses to integrate OTI’s secure cashless payment solutions into vending machines, kiosks and other unattended devices throughout the significant Canadian market.

Management Commentary

“I am pleased to announce another quarter of continued operational execution, highlighted by our robust sequential and year-over-year revenue growth,” said Shlomi Cohen, Chief Executive Officer of On Track Innovations. “The third quarter revenue of $6.5 million represents the highest third quarter revenue achieved since 2013. We continued to make notable progress on several key fronts, primarily through successful sales efforts in Japan and the United States.

 

“Alongside success in our existing markets, we continued to expand our efforts to new international markets – as evidenced through the granting of the MIR certification in Russia, where we delivered almost 8,000 advanced contactless readers in the third quarter, as well as the Interac certification in Canada. Both of these certifications are crucial to successfully operating in these countries, allowing our sales team to now focus their efforts on well-suited opportunities abroad.

 

“We also experienced our fourth consecutive quarter of positive adjusted EBITDA while expanding our recurring revenue base by 19% on an absolute dollar basis to $1.5 million per quarter, compared to $1.2 million in same year ago period. We also reduced our debt by 89% in the quarter when compared to the prior quarter, with total debt now standing at just $0.5 million.

 

“Our ability to maintain a significant technological advantage over the competition while diligently managing our expenses has positioned us well for continued revenue growth and shareholder value creation over the long-term,” concluded Cohen.

 

Q3 2018 Financial Highlights

  • Total revenue in the third quarter of 2018 increased 39% to $6.5 million, compared to $4.7 million in the same year-ago period.
  • Recurring revenues, on an absolute dollar basis, increased by 19% to $1.5 million, compared to $1.2 million in the same year-ago period.
  • Gross profit in the third quarter of 2018 was $3.4 million, or 53% of revenues, compared to $2.5 million, or 53% of revenues, in the same year-ago period.
  • Net loss from continuing operations in the third quarter of 2018 was $158,000, or $(0.00) per share, compared to a net loss from continuing operations of $573,000, or ($0.01) per share, in the same year-ago period.
  • Adjusted EBITDA in the third quarter of 2018 was $362,000, compared with adjusted EBITDA loss of $74,000 in the same year-ago period.
  • Cash, cash equivalents and short-term investments at September 30, 2018 totaled $5.9 million, compared to $8.8 million at June 30, 2018 and $8.7 million at September 30, 2017. Debt at the end of the third quarter of 2018 decreased by 89% to $0.5 million, compared to $4.5 million at the end of the second quarter of 2018.

 

Conference Call

Management will host an investor conference call at 9:00 a.m. EST on November 7, 2018, to discuss OTI’s third quarter 2018 financial results, provide a corporate update, and conclude with a Q&A from participants. To participate, please use the following information:

 

Date: Wednesday, November 7, 2018

Time: 9:00 a.m. Eastern Standard Time (6:00 a.m. Pacific Standard Time)

U.S. Dial-in: 1-888-317-6002

International Dial-in: 1-412-317-5245

Webcast: https://www.webcaster4.com/Webcast/Page/1720/27970

 

Please dial in at least 10 minutes before the start of the call and request to join the “On Track Innovations Q3 2018 Earnings Conference Call” to ensure timely participation.

 

The conference call will be available for replay by clicking here and via the investor relations section of the company’s website.

 

 

Use of Non-GAAP Financial Information

This press release contains certain non-GAAP measures, namely, adjusted EBITDA from continuing operations, or adjusted earnings from continuing operations before interest, income tax, depreciation and amortization. Adjusted EBITDA from continuing operations represents earnings before interest or financing expenses, income tax, depreciation and amortization, and further eliminates the effect of stock-based compensation expense and other expenses. OTI believes that adjusted EBITDA from continuing operations should be considered in evaluating the Company’s operations since it provides a clear indication of the Company’s operating results. This measure should be considered in addition to results prepared in accordance with U.S. GAAP, but should not be considered a substitute for the U.S. GAAP results. The non-GAAP measures included in this press release have been reconciled to the U.S. GAAP results in the tables below.

 

ON TRACK INNOVATIONS LTD.

RECONCILIATION OF NON-GAAP ADJUSTMENTThe following table reflects selected On Track Innovations Ltd. non-GAAP results reconciled to GAAP results: (US dollars in thousands)

 

  Three months ended Sept. 30, Nine months ended Sept. 30,
  2018 2017 2018 2017
  (Unaudited) (Unaudited) (Unaudited) (Unaudited)
         
Net (loss) income $       (184)  $        868  $       (797)   $        96  
Net loss (income) from discontinued operations 26 (1,441) 114 (1,365)
Financial expenses, net 2 126 129 236
Depreciation 342 295 1,022 878
Taxes on income  111 12 73 68
Total EBITDA FROM CONTINUING OPERATIONS $     297 $      (140) $           541 $           (87)
Other expenses 70                           –
Stock-based compensation          65          66             180             240
Total adjusted EBITDA FROM CONTINUING OPERATIONS $        362 $      (74) $         791 $         153

 

 

 

 

 

 

 

 

 

About On Track Innovations Ltd

On Track Innovations (OTI) is a global leader in the design, manufacture, and sale of secure cashless payment solutions using contactless NFC technology. OTI’s field-proven innovations have been deployed around the world to address cashless payment, automated retail and petroleum markets. OTI distributes and supports its solutions through a global network of regional offices and alliances. OTI is the proud recipient of the 2017 AI Award for Best Cashless Payment Solutions Provider – Israel. For more information, visit www.otiglobal.com.

 

Safe Harbor / Forward-Looking Statements

This press release contains express or implied forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Whenever we use words such as “will,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “believe,” “should,” “can” or similar expressions, we are making forward-looking statements. For example, we are using forward-looking statements when we discuss, among others: the importance of the MIR certification in Russia and the Interac certification in Canada for the successful operation in these countries, future opportunities and revenue growth and shareholder value creation over the long-term due to our ability to maintain a significant technological advantage over the competition while diligently managing our expenses.  Forward-looking statements are made as of the date of this document and are inherently subject to risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements.  Additional factors that could cause actual results to differ materially from those anticipated by our forward-looking statements are stated under the captions “Risk Factors” in our most recent Annual Report (Form 10-K) and other known and unknown uncertainties and risk factors including those detailed from time to time in the Company’s filings with the Securities and Exchange Commission.  Forward-looking statements are made as of the date of this release, and we expressly disclaim any obligation or undertaking to update forward-looking statements. The reader is cautioned not to place undue reliance on forward-looking statements.

 

Investor Relations Contact:

Greg Falesnik

MZ North America

1-949-385-6449

Greg.Falesnik@mzgroup.us

 

 

 

ON TRACK INNOVATION LTD.INTERIM UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET(US dollars in thousands)

 

 

September 30, December 31,
2018 2017

 

Assets

 

Current assets

Cash and cash equivalents $     4,514 $      6,742
Short-term investments 1,391  3,331
Trade receivables (net of allowance for doubtful
 accounts of $619 and $568 as of September 30, 2018
 and December 31, 2017, respectively) 4,026 5,827
Other receivables and prepaid expenses 2,676  1,563
Inventories 3,356 3,009
Total current assets 15,963 20,472

Long-term restricted deposit for employees benefit

468 498
Severance pay deposits 358 405

Property, plant and equipment, net

5,246 5,859

Intangible assets, net

              264                 336

 

Total Assets

 $      22,299 $      27,570

 

 

 

 

 

 

 

 

ON TRACK INNOVATION LTD.INTERIM UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET(US dollars in thousands) 

September 30, December 31,
2018 2017

 

Liabilities and Equity  

 

Current Liabilities

 
Short-term bank credit and current maturities
  of long-term bank loans $          504 $          4,181
Trade payables 6,670  6,264
Other current liabilities 2,133 2,421
Total current liabilities 9,307  12,866

Long-Term Liabilities

Long-term loans, net of current maturities 8    814
Accrued severance pay 874               939
Deferred tax liability 452               500
Total long-term liabilities 1,334            2,253
Total Liabilities 10,641        15,119

Commitments and Contingencies

Equity

Shareholders’ Equity

Ordinary shares of NIS 0.1 par value:
Authorized: 50,000,000 shares as of September 30, 2018 and
December 31, 2017; issued: 42,473,076 and 42,353,077 shares as
of September 30, 2018 and December 31, 2017, respectively;
outstanding: 41,294,377 and 41,174,378 shares
as of September 30, 2018, and December 31, 2017, respectively 1,068  1,064
Additional paid-in capital 224,968  224,758
Treasury shares at cost – 1,178,699 shares as of September 30,
   2018 and December 31, 2017 (2,000)         (2,000)
Accumulated other comprehensive loss (901)            (691)
Accumulated deficit (211,477)      (210,680)
Total Equity 11,658          12,451
Total Liabilities and Equity $       22,299 $     27,570

 

 

 

 

 

 

 

ON TRACK INNOVATION LTD.INTERIM UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS(US dollars in thousands, except share and per share data)

 

 

  Three months ended
September 30,
Nine months ended
September 30,
  2018 2017 2018 2017
   
Revenues  
Sales  $      5,020  $      3,445  $     14,157  $     11,871
Licensing and transaction fees 1,453  1,225 4,332 3,765
Total revenues  6,473  4,670 18,489 15,636
Cost of revenues
Cost of sales 3,051 2,192 8,778 7,468
Total cost of revenues 3,051 2,192 8,778 7,468
Gross profit 3,422 2,478 9,711 8,168
Operating expenses
Research and development 777 823 2,422 2,414
Selling and marketing 1,592 1,332 4,700 4,166
General and administrative 1,098 758 3,070 2,553
 
Total operating expenses 3,467 2,913 10,192 9,133
Operating loss from continuing operations (45) (435) (481) (965)
Financial expenses, net  (2)  (126)  (129)  (236)
 
Loss from continuing operations
 before taxes on income (47) (561) (610) (1,201)
Income tax  (111)  (12)  (73)  (68)
 
Net loss from continuing operations (158) (573) (683) (1,269)
Net (loss) income from discontinued operations (26) 1,441 (114) 1,365
 
Net (loss) income (184) 868 (797) 96
 
 

Basic and diluted net gain (loss) attributable to shareholders per ordinary share

From continuing operations (*) (0.01) (0.02) (0.03)
From discontinued operations (*) 0.03 (*) 0.03
$           (*) $         0.02 $       (0.02)  $            (*)
Weighted average number of ordinary shares
 used in computing basic and diluted net (loss)
 income per ordinary share 41,294,377 41,122,965 41,260,426 41,099,603

 

(*) Less than $0.01 per ordinary share.

 

 

 

 

ON TRACK INNOVATION LTD.INTERIM UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW(US dollars in thousands) 

Nine months ended September 30,
2018 2017
Cash flows from continuing operating activities
Net loss from continuing operations  $              (683)  $              (1,269)
Adjustments required to reconcile net loss to
net cash used in continuing operating activities:
Stock-based compensation related to options and shares issued
  to employees and others 180 238
Depreciation and amortization 978 878
Deferred tax, net (20) 37
Gain on sale of property and equipment (25) (9)
Accrued interest and linkage differences, net (41)
Changes in operating assets and liabilities:
Accrued severance pay, net (19) 72
Decrease in trade receivables, net 1,744 187
Increase in other receivables and prepaid expenses (1,162) (435)
Increase in inventories (381) (710)
Increase (decrease) in trade payables 668 (611)
Decrease in other current liabilities (273) (777)
Net cash provided by (used in) continuing operating activities 1,007 (2,440)
Cash flows from continuing investing activities
Purchase of property and equipment (467) (160)
Proceeds from sale of property and equipment 52 14
Change in short-term investments, net 1,195 2,917
Investment in capitalized certification costs (92) (185)
Proceeds from restricted deposit for employees benefit 8 44
Net cash provided by continuing investing activities 696 2,630
Cash flows from continuing financing activities
Decrease in short-term bank credit, net (3,449) (72)
Repayment of long-term bank loans (979) (469)
Proceeds from exercise of options and warrants 34 25
Net cash used in continuing financing activities (4,394) (516)
Cash flows from discontinued operations
Net cash used in discontinued operating activities (115) (86)
Total net cash used in discontinued operations (115) (86)
Effect of exchange rate changes on cash and cash equivalents (187) 460
 
(Decrease) increase in cash, cash equivalents and restricted cash (2,993) 48
 
Cash, cash equivalents and restricted cash – beginning of the period 7,799 (*) 7,500
 
Cash, cash equivalents and restricted cash – end of the period $               4,806 $           (*) 7,548

 

(*) Reclassified to conform with the current period presentation.

 

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On Track Innovations Partners with The George Municipality Western Cape Government to Offer Smart Cards in South Africa’s Public Transportation System

Partnership Marks OTI’s First Cashless Payments Entrance to South Africa Outside of Fueling

ROSH PINNA, Israel – October 6th, 2018 — On Track Innovations Ltd. (OTI) (NASDAQ: OTIV), a global provider of near field communication (NFC) and cashless payment solutions, has partnered with Almex Transport Solutions ticketing machines for the George Municipality Western Cape Government to implement the Go GEORGE Smart Cards, a “smart card” solution for South Africa’s public transportation system which will replace the paper ticketing system currently used on buses in the region.

The project, called The George Integrated Public Transport Network (GIPTN), is aimed at launching a new and improved public transport system for South Africa. OTI’s wholly owned subsidiary, OTI Africa, will supply ultra-intelligent OTI TRIO cashless readers that will register the fare upon boarding the bus via contactless NFC technology, which inevitably will save much-needed time for public transport scheduling, as well as eliminating the need for correct cash change and cleaning up the paper tickets waste problem.

 

“This new partnership to assist in the implementation of a ‘smart card’ program in South Africa is meaningful, as it marks our second entrance into the payment market in South Africa,” said Shlomi Cohen, CEO OTIGlobal. “We are confident that our TRIO cashless readers will help ensure a smooth transition and greatly benefit those using public transportation in the region.”

GO GEORGE Smart Cards will be issued and facilitated by the Standard Bank, whereby cardholders can load trips in different packages and fare categories onto the card at Smart Card kiosks, registered by GO GEORGE Smart Card top-up vendors and participating Standard Bank vendors such as supermarkets, self-service kiosks, petrol stations, and restaurants.

“GO GEORGE is proud to announce the implementation of the long-awaited GO GEORGE Smart Card, resembling a flexible bank card and replacing the awkward paper ticket system,” said James Robb, GO GEORGE Manager. “The service will be available on starting November 15th, and OTI is providing a critical component to ensure a successful launch.”

About Go George

The George Integrated Public Transport Network (GIPTN) is a project aimed at launching a new and improved public transport system for George and surrounding areas. GO GEORGE is operated by the public transport operators with existing services in the George area. The first trial phase launched on 8 December 2014, with routes rolling out in phases over the following months. The aim is to provide a quality public transport service that is reliable, affordable, safe, convenient and accessible and contributes to a better quality of life for all. Visit: http://www.gogeorge.org.za/

 

About OTI

On Track Innovations (OTI) is a global leader in the design, manufacture, and sale of secure cashless payment solutions using contactless NFC technology. OTI’s field-proven innovations have been deployed around the world to address cashless payment and management requirements for the Internet of Payment Things (IoPT), wearables, automated retail, and petroleum markets. OTI distributes and supports its solutions through a global network of regional offices and alliances. OTI is the proud recipient of the 2017 AI Award for Best Cashless Payment Solutions Provider – Israel. For more information, visit www.otiglobal.com.

Safe Harbor / Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Any statements that are not statements of historical fact should be considered forward-looking statements. Whenever we use words such as “will,” “anticipate,” “intend,” “look forward,” “can,” “may” or similar expressions, we are making forward-looking statements. For example, we are using forward-looking statements when we discuss, among others: our plans for the future, our plans for continued sales, our expectations regarding future product launches and growth into new markets, our ability to attract or retain customers, increases our footprint in key markets and our expectation of bringing tremendous value to our industry while generating predictable, high-margin, recurring revenues for the Company and great value for our shareholders. Forward-looking statements are made as of the date of this document and are inherently subject to risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements. Additional factors that could cause actual results to differ materially from those anticipated by our forward-looking statements are stated under the captions “Risk Factors” in our most recent Annual Report (Form 10-K) and other known and unknown uncertainties and risk factors including those detailed from time to time in the Company’s filings with the Securities and Exchange Commission. Forward-looking statements are made as of the date of this release, and we expressly disclaim any obligation or undertaking to update forward-looking statements. The reader is cautioned not to place undue reliance on forward-looking statements.

 

Investor Relations Contact:

Greg Falesnik
MZ North America
+1-949-385-6449
Greg.Falesnik@mzgroup.us

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On Track Innovations Receives Interac Certification for Canadian Market

ROSH PINNA, Israel – October 30th, 2018 — On Track Innovations Ltd. (OTI) (NASDAQ: OTIV), a global provider of near field communication (NFC) and cashless payment solutions, has received a renewed Interbank Network Interac certification, which now allows Canadian businesses to integrate OTI’s secure cashless payment solutions into vending machines, kiosks and other unattended devices throughout Canada.

Interac Corp. operates an economical, world-class debit payments system with broad-based acceptance, reliability, security, and efficiency. The organization is one of Canada’s leading payments brands and is chosen an average of 16 million times daily to pay and exchange money.

“We are pleased to announce that we have received the Interac certification, reaffirming our commitment to remain at the forefront of innovation within the exciting Canadian unattended payment market,” said Shlomi Cohen, CEO of OTI. “Canada has over 59,000 automated teller machines and over 450,000 merchant locations accessible through the Interac network, making this certification essential to doing business in Canada. I look forward to addressing this significant market opportunity by leveraging our continued technological advantage and aggressive new sales efforts nationwide,” concluded Cohen.

About OTI

On Track Innovations (OTI) is a global leader in the design, manufacture, and sale of secure cashless payment solutions using contactless NFC technology. OTI’s field-proven innovations have been deployed around the world to address cashless payment and management requirements for the Internet of Payment Things (IoPT), wearables, automated retail, and petroleum markets. OTI distributes and supports its solutions through a global network of regional offices and alliances. OTI is the proud recipient of the 2017 AI Award for Best Cashless Payment Solutions Provider – Israel. For more information, visit www.otiglobal.com.

 

Safe Harbor / Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Whenever we use words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate” or similar expressions, we are making forward-looking statements. For example, we are using forward-looking statements when we discuss our expectations regarding our growth or profitability, reduction of costs and expenses, expected divestitures, plans for our existing and new products and services, penetration of new markets and securing new customers, contributions of our regions to our growth, resolution of our outstanding patent infringement claims, strengthening of our balance sheet and deliver long-term shareholder value. Because such statements deal with future events and are based on OTI’s current expectations, they are subject to various risks and uncertainties and actual results, performance or achievements of OTI could differ materially from those described in or implied by the statements in this press release. Forward-looking statements could be impacted by the effects of the protracted evaluation and validation periods in the U.S. and other markets for contactless payment cards, or new and existing products and our ability to execute production on orders, as well as other risks and uncertainties, including those discussed in the “Risk Factors” section and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2016, and in subsequent filings with the Securities and Exchange Commission. Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be achieved. Except as otherwise required by law, OTI disclaims any intention or obligation to update or revise any forward-looking statements, which speak only as of the date hereof, whether as a result of new information, future events or circumstances or otherwise.

 

Investor Relations Contact:

Greg Falesnik
MZ North America
+1-949-385-6449
Greg.Falesnik@mzgroup.us

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On Track Innovations Ltd. to Report Third Quarter 2018 Financial Results and Host a Conference Call on Wednesday, November 7th at 9 a.m. EST

ROSH PINNA, ISRAEL – October 29, 2018 – On Track Innovations Ltd. (OTI) (NASDAQ: OTIV), a global provider of near field communication (NFC) and cashless payment solutions, will release financial results for the third quarter ended September 30, 2018 before market open on Wednesday, November 7th at 9:00 a.m. EST.

Management will host an investor conference call at 9:00 a.m. EST on November 7th, 2018, to discuss OTI’s third quarter 2018 financial results, provide a corporate update, and conclude with a Q&A from participants. To participate, please use the following information:

Q3 2018 Conference Call and Webcast

Date: Wednesday, November 7, 2018

Time: 9:00 a.m. Eastern Standard Time (6:00 am PST)

U.S. Dial-in: 1-888-317-6002

International Dial-in: 1-412-317-5245

Webcast: https://www.webcaster4.com/Webcast/Page/1720/27970

Please dial in at least 10 minutes before the start of the call and request to join the “On Track Innovations Q3 2018 Earnings Conference Call” to ensure timely participation.

The conference call will be available for replay by clicking here and via the investor relations section of the company’s website.

 

About OTI

On Track Innovations (NASDAQ: OTIV) is a global leader in the design, manufacture, and sale of secure cashless payment solutions using contactless NFC technology. OTI’s field-proven innovations have been deployed around the world to address cashless payment and management requirements for the Internet of Payment Things (IoPT), wearables, automated retail and petroleum markets. OTI distributes and supports its solutions through a global network of regional offices and alliances. OTI is the proud recipient of the 2017 AI Award for Best Cashless Payment Solutions Provider – Israel. For more information, please visit www.otiglobal.com.

 

Safe Harbor for Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Whenever we use words such as “will,” “may,” “expect,” “anticipate,” “intend,” “plan,”  or similar expressions, we are making forward-looking statements. For example, we are using forward-looking statements when we discuss our expectations regarding our growth or profitability, reduction of costs and expenses,  plans for our existing and new products and services, penetration of new markets and securing new customers, contributions of our regions to our growth,  strengthening of our balance sheet and delivery long-term shareholder value. Because such statements deal with future events and are based on OTI’s current expectations, they are subject to various risks and uncertainties and actual results, performance or achievements of OTI could differ materially from those described in or implied by the statements in this press release. Forward-looking statements could be impacted by the effects of the protracted evaluation and validation periods in the U.S. and other markets for contactless payment cards, or new and existing products and our ability to execute production on orders, as well as other risks and uncertainties, including those discussed in the “Risk Factors” section and elsewhere in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2018, and in subsequent filings with the Securities and Exchange Commission. Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be achieved. Except as otherwise required by law, OTI disclaims any intention or obligation to update or revise any forward-looking statements, which speak only as of the date hereof, whether as a result of new information, future events or circumstances or otherwise. The reader is cautioned not to place undue reliance on forward-looking statements.

 

OTI Press Contact:

Richard Harris

Marketing Manager

press@otiglobal.com

 

OTI Investor Relations Contact:

Greg Falesnik

Managing Director

MZ Group – MZ North America

Main: 949-385-6449

OTIV@mzgroup.us

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On Track Innovations Receives MIR Certification For Russian Market

Receipt of MIR Certification Positions OTIV as a Leading Competitor in the Russian Payment Industry; OTI Expects to Deliver 5,000 Advanced Payment Systems in Q3 2018

ROSH PINNA, ISRAEL – August 22nd., 2018 – On Track Innovations Ltd. (OTI) (NASDAQ: OTIV), a global provider of near field communication (NFC) and cashless payment solutions, today announced that it has received the MIR National Card Payment System organization certification in the Russian market.

OTI expects to deliver 5,000 advanced payment systems to the Russian market in the third quarter of 2018, for which OTI will recognize a one-time sale, followed by a high-margin, recurring revenue stream over the long-term. Due to confidentiality, the terms of the contract cannot be disclosed.

The MIR certification was granted after tests between OTI and MIR concluded with zero errors.

This certification grants OTI’s Russian customers the ability to use OTI’s cashless payment solutions within the Russian market.

The Russian national payment system created the MIR payment card in 2014 with the primary objective of making sovereign payments fully independent of foreign organizations. As opposed to traditional international payment card transactions, MIR transactions cannot be suspended, as no external financial or governmental factors control their processing. By the end of 2016, 1.8 million MIR cards had been issued by 64 banks, and according to the Bank of Russia as of September 2017, a total of 30 million MIR cards are planned for release.

“We are very pleased to announce our receipt of the MIR certification, a key component of our strategy to penetrate the strategic Russian unattended payment market,” said Shlomi Cohen, Chief Executive Officer of On Track Innovations. “Our successful tests concluded with zero errors, making our solution a clear favorite for the industry. We currently expect to deliver at least 5,000 advanced payment systems to the Russian market in Q3 2018.”

 

About OTI

On Track Innovations (OTI) is a global leader in the design, manufacture, and sale of secure cashless payment solutions using contactless NFC technology. OTI’s field-proven innovations have been deployed around the world to address cashless payment and management requirements for the Internet of Payment Things (IoPT), wearables, automated retail and petroleum markets. OTI distributes and supports its solutions through a global network of regional offices and alliances. OTI is the proud recipient of the 2017 AI Award for Best Cashless Payment Solutions Provider – Israel. For more information, visit www.otiglobal.com.

 

Safe Harbor / Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Any statements that are not statements of historical fact should be considered forward looking statements. Whenever we use words such as “expect,” “plan,” “anticipate,” “intend,” “would,” “should,” “will,” “can” or similar expressions, we are making forward-looking statements. For example, we are using forward-looking statements when we discuss, among others: our plans for the future, our expectations regarding future product launches and growth into new markets such as the Russian market, sources of revenue and anticipated revenue, including the contribution from the growth of new products, services and markets and our expectation of bringing tremendous value to our industry while generating predictable, high-margin, recurring revenues for the Company and great value for our shareholders. Forward-looking statements are made as of the date of this document and are inherently subject to risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements. Additional factors that could cause actual results to differ materially from those anticipated by our forward-looking statements are stated under the captions “Risk Factors” in our most recent Annual Report (Form 10-K) and other known and unknown uncertainties and risk factors including those detailed from time to time in the Company’s filings with the Securities and Exchange Commission. Forward-looking statements are made as of the date of this release, and we expressly disclaim any obligation or undertaking to update forward-looking statements. The reader is cautioned not to place undue reliance on forward-looking statements.

 

Investor Relations Contact

Greg Falesnik
MZ North America
+1-949-385-6449
Greg.Falesnik@mzgroup.us

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